Home >Markets >Commodities >Gold prices today fall for first time after 4 days, silver rates tumble

Gold prices in India fell today in tandem with a fall in global rates while silver also skidded. On MCX, gold futures today fell 0.32% to 47,857 per 10 gram after a four-day rising streak while silver futures declined 1% to 68,275 per kg. In global markets, gold prices eased 0.2% to $1,838.41 an ounce as weaker than expected US inflation data dented bullion's appeal. But a flat US dollar and lower Treasury yields kept losses in check.

If the resistance of $1870 remain capped, there are chances of corrective selloffs for the day, Geojit said in a note. However, a direct drop below $1790 is needed to trigger major liquidation pressure in the counter, it added.

On MCX, gold faces resistance at 48,060 while has support at 46,220, the brokerage said.

US consumer prices rose moderately in January, tempering expectations for a sustained acceleration in inflation this year. Gold is considered a hedge against inflation. On Wednesday, the 10-year Treasury yield fell back to 1.12%.

Among other precious metals, spot silver shed 0.4% to $26.89 and palladium eased 0.2% to $2,351.24.

In a speech on Wednesday, Federal Reserve Chair Jerome Powell said the US job market remains a long way from a full recovery and it will require more than supportive monetary policy to achieve and sustain maximum employment.

ETF interest continued to remain weak. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust fell 0.15% to 1,146.60 tonnes on Wednesday.

Hopes of huge US aid package continue to support gold and silver at lower levels, Kotak Securities said in a note.

Back in India, gold imports in January surged 72% from a year earlier, Reuters reported, citing sources as a correction in prices from a record high drew retail buyers and jewellers.

Gold prices in India are down about 8,000 from their August highs of 56,200 per 10 gram.

In India, investors put in 625 crore in gold exchange traded funds (ETFs) in January, 45% higher than the preceding month. The inflow pushed the asset base of gold funds by 22% to 14,481 crore at the end of January from 14,174 crore at the end of December, data available with Association of Mutual Funds in India showed. (With Agency Inputs)

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